Financial Analysis of 3M Corporation

Paper Summary:

This research essay provides a detailed analysis of the success of 3M Corporatio'sn generation and management of its accounting and financial information. This information is then evaluated as it applies to decisions making and control process within the company. A brief introduction to 3M's main business segments is presented. Charts and graphs illustrate the company's output and financial standing throughout the paper. The author recommends an analysis of 3M's financial statements in order to understand the company's strengths and drawbacks.

Analysis of 3M's Current Ratio
Analysis of 3M's Acid Test Ratio
Analysis of 3M's Inventory Turnover Ratio
Analysis of 3M's Working Capital
Conclusions and Recommendations

From the Paper:

"Current Ratio depicts the extent to which current liabilities of 3M are covered by respective assets which are anticipated to be converted into cash or its equivalents in the short span of time. 3M is having positive current ratios in the past three years. This indicates that 3M's current assets are higher than that of its current liabilities during the past three financial years. It also signifies that 3M is having financial ability to meet its current liabilities out of its internal cash accrual which arises from its current assets without relying on bank finance."

Sample of Sources Used:

• "Form 10-k of 3M CO-mmm"Stock Exchange Commission Form 10-k for 2007 of 3M Corporation. February 2008. 3 May 2008. < http://phx.corporate-ir.net/phoenix.zhtml?c>.
• Osteryoung, Jerome, Richard L. Constand, and Donald Nast. "Financial Ratios in Large Public and Small Private Firms." Journal of Small Business Management 30.3 (1992): 35+.

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